Bara-Parsa Corridor Industrial Zone Remains Limited to Paperwork

Five years after the government announced plans to develop a new industrial zone in Bara and Parsa districts, the project has seen no progress beyond budgetary statements, local industrialists said.

Although the government allocated funds for the project in the fiscal year 2021/22, the plan has remained limited to paperwork. With no visible groundwork initiated, industrialists from Bara and Parsa have once again urged the government to move forward with the establishment of the new industrial zone.

The Birgunj Chamber of Commerce and Industry has formally requested the government to act on the long-delayed project. In a letter addressed to Finance Minister Rameshore Khanal, Chamber President Hari Prasad Gautam stressed the need to operationalise an alternative industrial zone within the Bara–Parsa industrial corridor to support industrial expansion.

Private-sector representatives say it has become increasingly difficult to acquire land for industry in the corridor. Even when land is available, prices have surged so sharply that running industries has become unfeasible. According to the Chamber’s letter, the rapid rise in land prices, shortage of suitable industrial sites, lack of a proper drainage system for industrial waste, absence of water treatment facilities, irregular electricity supply and security concerns have made establishing new industries increasingly challenging.

The Chamber has proposed establishing a new industrial zone on nearly 400 bighas of land in the D and E blocks of the Special Economic Zone in Bara. Gautam said that a committee has already been formed and a feasibility study completed through the Industrial Zone Management Limited (IZML), a corporate entity established by the government in 1988 for the overall management and supervision of industrial districts as well as promotion of industries within those districts.

A high-level committee had initiated groundwork to build the industrial zone on public land within Birgunj and Parsagadhi municipalities in Parsa. The Chamber had also written to IZML, urging it to expedite the feasibility study.

A high-level team from the committee visited Birgunj and held discussions with stakeholders regarding the feasibility. Following this, the Ministry of Industry, Commerce and Supplies directed IZML to conduct a detailed study.

Earlier, Birgunj Metropolitan City had decided to set up an industrial zone on 650 bighas of land owned by the Guthi Sansthan in Ward No. 31.